If Taiwan’s semiconductor industry were to be destroyed, downgraded, or subjected to Western sanctions as a result of a Chinese military occupation of the island, the consequences for the world economy would be enormous due to Taiwan’s irreplaceable market share in semiconductor production. more advanced products. chips that are needed for many next-generation technologies, such as advanced military electronics, artificial intelligence, and quantum computing.
Fully aware of how important the so-called silicon shield is to preserving Taiwan’s continued de facto sovereignty, TSMC has made it clear that while it will relocate production capacity for some semiconductor chips to friendly countries such as the United States and Japan, the Most advanced chip manufacturing remains in Taiwan, according to Lee.
“A trade deal creates a halo effect, so the US private sector comes in and invests more and when the US comes in, allies invest more,” said Keith Krach, who lobbied as assistant secretary of state for economic growth during the Trump administration. for deeper trade engagement with Taiwan. “For security and defense reasons, we want as much investment as possible from allies in Taiwan. That is why it is strategic because it is a great foreign policy tool. If you’re looking at trading only in a box, which our government sometimes does, then you’re not taking full advantage of that leverage.”
Key US lawmakers have expressed support for the Biden administration to deepen its trade engagement with Taiwan, linking it to US national security interests. Russia’s invasion of Ukraine. That’s because of the much larger size of the Chinese and Taiwanese economies, respectively, and the dependence of so many foreign trade sectors on Taiwan’s semiconductor industry.
At a House Ways and Means Committee hearing in September on trade prospects with Taiwan, leaders of both committees expressed strong support.